Executives' Compensation in Top German Corporations to Increase in 2024

CEO Compensation in Top German Corporations Foreseen to Increase in 2024 - Executives' Compensation in Top German Corporations to Increase in 2024

In the corporate world of Germany, executive compensation has been on the rise, with several high-profile CEOs surpassing the symbolic 10-million-euro "barrier" in 2024.

Oliver Blume, the CEO of Volkswagen, led the pack with a salary of 10.6 million euros, followed closely by Bjørn Gulden of Adidas, who received a salary of 10.3 million euros. Christian Sewing, the CEO of Deutsche Bank, also joined the exclusive club with a salary of 9.87 million euros.

This trend is influenced by several factors, including increasing overall pay, evolving remuneration structures, and the growing integration of ESG (Environmental, Social, Governance) metrics into pay schemes.

Pay increases and bonus enhancements are common, with many companies proposing remuneration policies that boost annual bonuses and long-term incentive opportunities. Salary increases also feature, albeit less frequently. These increases are justified not only by benchmarking against peers but also by company-specific factors such as performance, competitive market positioning, and strategic objectives over the long term.

Some firms are adjusting the structure of pay packages, incorporating multipliers on performance-based awards or adopting value-creation plans focused on sustained 5-year growth. There are also slight increases in time-based share awards within hybrid incentive plans. Shareholder approval of these new structures has been high, reflecting investor support for performance-linked pay.

The use of ESG metrics in executive compensation has become widespread, especially in European banking, including Germany. Over 90% of European listed companies use ESG-linked incentives, with metrics increasingly calibrated to ensure measurability and meaningful impact on sustainability and governance goals.

The salary budget outlook for 2025-2026 in Germany projects a cautious but steady growth of around 3.2% to 3.6%, with this broader wage trend underpinning rising executive pay. However, this trend does not alone explain the highest-end pay packages.

The threshold of 10 million euros for CEO pay marks a psychologically and publicly notable level in Germany. The crossing of this barrier by leading CEOs like Blume, Gulden, Sewing, and others demonstrates a trend toward higher compensation levels driven by company success, market competition, and evolving incentive structures.

This reflects broader European trends but also Germany-specific contexts of governance, shareholder approval, and strategic alignment. As the competition among top companies intensifies, it is expected that executive pay will continue to rise, reflecting the premium placed on talent and performance in today's corporate world.

[1] Remuneration Reporting in Germany: Current Developments and Future Challenges. (2022). German Corporate Governance Code.

[2] ESG Integration in Executive Compensation: A Global Perspective. (2021). McKinsey & Company.

[3] European Commission, Directorate-General for Financial Stability, Financial Services and Capital Markets Union. (2020). Integrating ESG factors into remuneration policies.

[4] Salary Trends in Germany 2025-2026. (2023). Mercer.

The salary growth of CEOs in EC countries, such as Germany, is influenced by factors like increasing overall pay, evolving remuneration structures, and the integration of ESG metrics into pay schemes. The use of ESG metrics, particularly in European banking, has become widespread, leading to the adoption of performance-linked pay.

In line with this trend, the threshold of 10 million euros for CEO pay in Germany is psychologically and publicly notable, and its crossing by leading CEOs like Blume, Gulden, Sewing, and others reflects a trend toward higher compensation levels driven by company success, market competition, and evolving incentive structures.

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